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Journalism of Courage
Solitaires have Indians and Chinese hooked. The demand for diamonds in the two Asian giants is on the rise and with the current pace,experts say,the two nations would surpass the US,the worlds largest consumer for the precious gemstone.
It is in this backdrop that the two neighbouring countries are meeting on August 27 to discuss,among other issues,the options available to capture the potential market.
Indian exporters are looking to spread their reach in China,currently obstructed by several hurdles in the neighbouring country. There are three major impediments when it comes to export of diamonds to China,Indian exporters say. Not only does China levy a high import duty on diamonds,it also has stringent quarantine checks on Indian diamonds. Further,there is just one agency through which India diamonds can enter China.
The main issue for us is high duty levied by China. It is 17-19 per cent. The duties should be reduced. The other issue is that there is just one agency through which all diamonds entering into China have to pass. You cant do business across the country from just one agency, said Mehul Choksi,chairman and managing director,Gitanjali Group,integrated diamond and jewellery manufacturer-retailers.
All diamonds entering China have to come through the Shanghai Diamond Exchange. Indian exporters for long have been demanding more such agencies in places,including Guangzhou,Shenzhen and Beijing to increase their customer reach.
Though India remains the leader in cutting and polishing diamonds,China is threatening to overtake India in the trade. The Chinese government is very supportive of the industry and encourages investment in the sector.
Then there are extensive quarantine checks imposed by China,forcing exporters to take the Hong Kong route.
India may ask China to consider removing the quarantine difficulties being faced by Indian exporters to improve direct trade with China, a government official said.
Indias export of polished and cut diamond stood at $1.44 billion for the month of June as against $2.2 billion in the same period a year ago. The export of diamond for the April-June period was $4.04 billion as compared to $6.51 billion during the corresponding period a year ago. Gems and jewellery account for a major chunk of Indias total export.
In May,gems and jewellery export stood at $3.6 billion. Together,India and China have a total of 24 per cent share of the world diamond market.
